Local schools open as Volusia voters decide key funding question

Saturday

Aug 16, 2014 at 10:25 PMAug 16, 2014 at 11:02 PM

Editor’s note: This is the fourth and final story in a periodic series highlighting the pros and cons of a proposed extension to the half-cent sales tax that supports capital needs for Volusia County schools.

By Annie Martinannie.martin@news-jrnl.comDAYTONA BEACH — Rolling into town on the main drag, it’s hard to miss the imposing, three-story brick buildings that make up Mainland High School. To Volusia County School Board Chairwoman Candace Lankford, the striking campus sends a message to residents and visitors alike: This community cares about its schools. The $53 million Mainland facility, which opened in 2006, was paid for through a half-cent sales tax that voters approved in 2001. Now Lankford is hoping Volusia voters will decide to renew the half-cent tax, which is expected to generate $480 million over 15 years. “This is an investment in our future,” she said. “It’s not only about the students and schools. It’s about economic development.”As Volusia and Flagler county students prepare to return to class Monday, proponents of the sales- tax extension hope they can count on the additional funding to replace and renovate buildings, upgrade technology and enhance security on their campuses. The primary election is set for Aug. 26, though early voting started Saturday in Volusia. The current half-cent sales tax will sunset at the end of 2016 if voters don’t sign off on the extension. Supporters are eager to tell Volusia residents they won’t have to pick up the whole tab for those improvements because an estimated 35 to 40 percent would be paid by visitors. But there’s another side of the coin: Such a regressive tax disproportionately hurts low-income residents. Mark Soskin, an associate professor of economics at the University of Central Florida, studied the effects of a sales tax in Volusia County before voters approved the first sales tax in 2001. Despite the tax’s regressive nature, Soskin said counties like Volusia where a high percentage of the tax would be paid by visitors would be “absolutely stupid” not to levy a local option sales tax. Several business groups, including the Daytona Beach Regional Chamber of Commerce and the Volusia Building Industry Association, have publicly endorsed the tax. While no organized opposition has emerged, supporters know they may encounter resistance, especially from voters who don’t have school-age children. Ed Connor, the vice president of the fiscally conservative Volusia Tax Reform, said his group hasn’t taken a formal stance on the school district’s proposal, but he said he feels a sales tax is the “lesser of the evils,” compared with a property tax increase. The group opposed a proposed property tax hike in 2012 that would have generated $26 million annually for four years for operating expenses. During the months before the 2012 vote, Connor’s group estimated that the top 10 percent of property owners, including many businesses, would carry about half of the tax burden. For successful business owners with high-value homes, he said, that’s “a double whammy.”Connor makes no bones about the fact he’s also concerned about his own property tax bill, which he said has totaled about $18,000 annually in recent years. Connor’s home on John Anderson Drive in Ormond Beach had a taxable value of $884,498 last year, according to the Volusia County Property Appraiser’s website. He said he chose to live in Volusia County because it was the only place in Florida where he could afford to live on the water.“I don’t want to be forced out of my home by a greedy government,” Connor said. On the other hand, Connor said the argument that low-income people are hit disproportionately by a sales tax is “bogus” because necessities like food and medicine are exempt.If voters approve the school tax, the district will replace five aging schools (Chisholm Elementary in New Smyrna Beach, Deltona Middle, George Marks Elementary in DeLand, Pierson Elementary and Tomoka Elementary in Ormond Beach) and complete major renovations at more than a dozen other campuses at a total cost of $211 million. The school district also plans to spend $135 million on technology upgrades, including purchasing new equipment, and $45 million on security improvements across the district. For School Board member Linda Costello, who was elected to the School Board in 2012 on a platform of cost savings, the sales-tax extension is necessary. Asked about the tax’s disproportionate effect on low-income families (about two-thirds of Volusia students are eligible for free or reduced price lunches this year, an indicator of poverty), Costello pointed to the success of the current sales tax.“The results are in and I don’t think it’s had a negative impact,” Costello said. “I think it would be outweighed by the fact the tourists are sharing (the burden).”Two years ago, Costello opposed the proposed property tax hike, instead suggesting the school district reduce spending on curriculum development. The district still may be able to clamp down on costs, but Costello said she firmly supports the sales tax proposal. “We need it,” Costello said. “Regardless of how much money we could save, it wouldn’t begin to cover our capital needs expenses.”